AKAM Surges 11%: Q1 Rev, EPS Beat

By Tiernan Ray

Shares of Internet infrastructure provider Akamai Technologies (AKAM) are up $3.85, or almost 11%, at $39.93, after the company this afternoon reported Q1 revenue and earnings per share that topped analysts estimates.

Revenue in the three months ended in March rose 15.4%, year over year, to $368 million, yielding EPS of 51 cents per share.

Analysts had been modeling $358 million and 47 cents.

CEO Tom Leighton said the company was “very pleased” with the results, noting “We saw strong acceleration in our media delivery solutions, made further traction in our management of network costs, and continued our investments to capitalize on what we see as the opportunities and megatrends shaping online business: cloud, mobile, video and security.”

Akamai spent $40 million on share repurchases in the quarter, leaving $119 million left in its authorization. It ended the quarter with over $1 billion in cash and equivalents, it said.

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.